IIA IIA Certifications IIA-CIA-PART3-3P Questions & Answers

• Question 251:

  Which of the following costs would be incurred in an inventory stockout?

  A. Lost sales, lost customers, and backorder.

  B. Lost sales, safety stock, and backorder.

  C. Lost customers, safety stock, and backorder.

  D. Lost sales, lost customers, and safety stock.

  Correct Answer: A

• Question 252:

  The activity that involves a trial run of a product in a typical segment of the market before proceeding to a national launch is referred to as:

  A. Test marketing

  B. Experimentation

  C. Segmentation

  D. Positioning

  Correct Answer: A

• Question 253:

  According to Porter's model of competitive strategy, which of the following is a generic strategy?

  1 Differentiation. 2) Competitive advantage. 3) Focused differentiation. 4) Cost focus.

  A. 2 only

  B. 3 and 4 only

  C. 1, 3, and 4 only

  D. 1, 2, 3, and 4

  Correct Answer: C

• Question 254:

  Which mindset promotes the most comprehensive risk management strategy?

  A. Increase shareholder value.

  B. Maximize market share.

  C. Improve operational efficiency.

  D. Mitigate losses.

  Correct Answer: A

• Question 255:

  Which of the following statements about matrix organizations is false?

  A. In a matrix organization, conflict between functional and product managers may arise.

  B. In a matrix organization, staff under dual command is more likely to suffer stress at work.

  C. Matrix organizations offer the advantage of greater flexibility.

  D. Matrix organizations minimize costs and simplify communication.

  Correct Answer: D

• Question 256:

  The market price is the most appropriate transfer price to be charged by one department to another in the same organization for a service provided when:

  A. There is an external market for that service.

  B. The selling department operates at 50 percent of its capacity.

  C. The purchasing department has more negotiating power than the selling department.

  D. There is no external market for that service.

  Correct Answer: A

• Question 257:

  The first step in determining product price is:

  A. Determining the cost of the product.

  B. Developing pricing objectives.

  C. Evaluating prices set by the competitors.

  D. Selecting a pricing method.

  Correct Answer: B

• Question 258:

  Which stage of group development is characterized by a decrease in conflict and hostility among group members and an increase in cohesiveness?

  A. Forming stage.

  B. Norming stage.

  C. Performing stage.

  D. Storming stage.

  Correct Answer: B

• Question 259:

  In terms of international business strategy, which of the following is true regarding a multi- domestic strategy?

  A. It uses the same products in all countries.

  B. It centralizes control with little decision-making authority given to the local level.

  C. It is an effective strategy when large differences exist between countries.

  D. It provides cost advantages, improves coordinated activities, and speeds product development.

  Correct Answer: C

• Question 260:

  In an analysis of alternative credit-management policies, which of the following components will cause the net present value of receivables on credit sales to increase, if everything else remains constant?

  A. A tougher collections policy that reduces the bad debt loss ratio.

  B. A higher cost per unit sold.

  C. A longer average collection period.

  D. An increase in the cost of capital.

  Correct Answer: A